Official Summer 2015 Budget Thread

[SimonMac]

Indeed. When IR35 was first announced it was all so simple. You could not go from permie to contractor in the same company.

This dividend thing could get very messy.

Question is, for those of us taking salary and dividends, how much extra will we pay?

Fag packets sums

Assuming you take the full £31,785 in dividends upto the 40% limit, from now on you will get £29,776 so £2,009 a year worse off

[BrilloPad]

Fag packets sums

Assuming you take the full £31,785 in dividends upto the 40% limit, from now on you will get £29,776 so £2,009 a year worse off

Understood.

Does you fag packet say whether we would be better off switching to salary instead of dividends?

[Underbase]

Fag packets sums

Assuming you take the full £31,785 in dividends upto the 40% limit, from now on you will get £29,776 so £2,009 a year worse off

Yeah basically what I figured, on the flip side CT is down 2% so we will get that back on the other side (making the div tax more like 5.5% and other retained earnings increased)

And increase in that NI break, two man bands looking better and better.

[tomtomagain]

Wow .... he's stolen Labours claim on the North and the low paid.

[SimonMac]

Understood.

Does you fag packet say whether we would be better off switching to salary instead of dividends?

You mean with saved CT?

Probably not when you factor in NI (both sides)

[barrydidit]

Wow .... he's stolen Labours claim on the North and the low paid.

+1

[administrator]

Fag packets sums

Assuming you take the full £31,785 in dividends upto the 40% limit, from now on you will get £29,776 so £2,009 a year worse off

Aye, that sounds about right, same ball park as Underbase.

2% less corp tax though. What the chancellor giveth, the chancellor taketh away.

[TheFaQQer]

Aye, that sounds about right, same ball park as Underbase.

2% less corp tax though. What the chancellor giveth, the chancellor taketh away.

Only a 1% cut in 2017. Change in dividends in 2016.

[SimonMac]

Aye, that sounds about right, same ball park as Underbase.

2% less corp tax though. What the chancellor giveth, the chancellor taketh away.

No point having more money in the company if we can't get it out

[Jog On]

How does this factor in?

Personal tax allowance to rise to £11,000 next year

The point at which people start paying income tax at 40p to rise from £42,385 to £43,000 next year

Budget 2015 key points: At-a-glance summary - BBC News